On Monday, JPMorgan Chase announced plans to spend up to $10 billion on American businesses deemed essential to the country’s economic stability and national security, as well as to hire more bankers.
The action is a component of a larger 10-year, $1.5 trillion plan to support, fund, and invest in sectors such as advanced manufacturing, energy, and military that are essential to the expansion of the US economy.
Before the bell, shares of the biggest bank in the United States were up 1.1%.
The $10 billion will be used for venture capital and direct equity investments, according to JPMorgan.
The decision comes as the administration of U.S. President Donald Trump seeks to modernize infrastructure and reduce reliance on foreign supply chains, particularly in industries such as rare earths, electronics, pharmaceuticals, and clean energy.
“It has become painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products, and manufacturing—all of which are essential for our national security,” Jamie Dimon, chairman and CEO of JPMorgan Chase, stated.
With vows to drastically increase tariffs in retaliation for China reducing its exports of rare earths, Trump reignited the trade war against Beijing on Friday, breaking a fragile truce between the two largest economies.
